Crypto tax UK explained: learn HMRC rules on capital gains, income tax, staking, NFTs and more. Stay compliant and cut tax stress with expert help.
Cryptocurrency is growing fast in the UK, but with opportunity comes responsibility. HMRC has made it clear: if you hold, trade, or earn crypto, you may owe tax. Failing to report correctly can mean penalties and unwanted stress.
This guide explains how crypto tax in the UK works, including Capital Gains Tax (CGT), Income Tax, record-keeping, and why using a crypto accountant can save time and money.
How HMRC Taxes Cryptocurrency in the UK
If you are investing, crypto tax UK rules apply to every disposal. HMRC does not see crypto as money. Instead, it treats crypto assets as property. This means the tax depends on how you acquire, use, and dispose of your holdings.
There are two main taxes that may apply:
- Capital Gains Tax (CGT) – on profits from selling or swapping crypto.
- Income Tax – when crypto is received as payment, mining rewards, staking, or airdrops.
Crypto Capital Gains Tax Explained
You pay Capital Gains Tax when you dispose of crypto. Disposal includes:
- Selling for fiat currency (e.g., GBP).
- Swapping one token for another.
- Paying for goods or services.
- Gifting to anyone except a spouse or civil partner.
CGT is calculated as:Sale Price – Allowable Costs (purchase price + fees)
Current CGT rates:
- Basic Rate taxpayers: 10%
- Higher/Additional Rate taxpayers: 20%
- CGT allowance: £3,000 for 2025/26.
Crypto Income Tax: Mining, Staking & Airdrops
Understanding Your Crypto Tax UK Obligations:
Some crypto transactions are taxed as income. These include:
- Mining and staking – rewards from organised activity may count as income.
- Airdrops – if linked to a service (like promotion or marketing).
- Employment or freelance pay – crypto received as salary is taxed like normal income.
Income tax rates in 2025/26:
- Basic Rate: 20% (up to £50,270).
- Higher Rate: 40% (£50,271 – £125,140).
- Additional Rate: 45% (above £125,140).
Record-Keeping for Crypto Tax Reporting
HMRC requires clear and detailed records. You should track:
- Dates of each transaction.
- GBP value at the time of trade.
- Fees paid.
- Wallet addresses and exchanges used.
Crypto tax must be reported on your Self Assessment by 31 January following the tax year.
Deadlines, Penalties & Compliance
Important dates for UK investors:
- Self-Assessment deadline: 31 January.
- Late filing penalty: £100 minimum, rising if unpaid.
- Late payment interest: currently 7.75%.
HMRC is increasing scrutiny on crypto activity. Missed or incorrect reporting can trigger fines or investigations.
Do You Need a Crypto Tax Accountant?
Managing crypto tax is not always simple. DeFi, NFTs, and staking can add complexity. Our crypto tax UK accountants specialise in HMRC compliance as well as:
- Using software to reconcile wallets and exchanges.
- Ensuring correct tax treatment for every transaction.
- Advising on tax planning and compliance.
Understanding crypto tax UK obligations can help you avoid penalties. With expert help, you reduce errors, save time, and avoid paying more tax than required.
Conclusion
Understanding crypto tax in the UK is vital for investors, traders, and businesses. Whether it’s CGT on disposals or Income Tax on rewards, HMRC expects accurate reporting.
Working with specialist accountants gives peace of mind and helps you stay compliant while protecting your profits.
👉 Need help with crypto taxes? Our UK-based accountants specialise in HMRC crypto compliance. [Book a consultation today].
FAQ’s
Do you pay tax on crypto in the UK?
Yes. HMRC taxes crypto as property. You may owe Capital Gains Tax on disposals and Income Tax on rewards such as staking or mining.
How much crypto tax do I pay in the UK?
Basic Rate taxpayers pay 10% CGT, Higher Rate 20%. Income Tax ranges from 20% to 45% depending on your total annual earnings.
What is the crypto CGT allowance for 2025/26?
The CGT allowance is £3,000 for individuals (£1,500 for most trusts). Gains above this must be reported to HMRC.